Do Companies Take Software, And Not Give?

Posted by timothy on Saturday December 27, 2003 @08:10AM from the hi-darl dept.

SirDaShadow writes "The Inquirer has an excellent article that describes how companies take from the Open Source Community and how few are giving back. At the end of the article, it says it might be tax deductible. This made me think...wouldn't it be great for the OS community if we could provide a law to facilitate tax cuts to companies who give to OS, or at least make it mandatory to for-profit organizations to give a certain minimum amount and take it out of their taxes?" This piece ignores the obvious and large contributions that some companies have made in money, programmer time, code release and even just lending their name and credibility to projects like KDE and GNOME, but it does have some truth -- see for instance the Busybox Hall of Shame.

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Re:Tax deductible by Anonymous Coward · 2003-12-27 08:19 · Score: 5, Informative

"Tax deductible" effectively means that the government pays for it and not the person/corporation that deducts it from their taxes.
Not true at all. The government only pays for a percentage of the cost - which would be approximately the marginal tax rate of the entity donating the code.
For example, if I donate $1 to a charity, and my marginal tax rate is 50%, I wind up paying $0.50 less in taxes than I would have without the tax deduction. I'm still out $0.50 from my own pocket.
IANAA (accountant), so YMMV.